UK central bank predicts that some stimulus will probably be withdrawn “in the coming months”
- Breaking: BoE leaves interest rates unchanged…
- …but hints that rate hike is coming
- City: 42% chance of rate rise in November
- November hike is ‘real possibility’ – City Index
My colleague Richard Partington has analysed the minutes of today’s Bank of England, and writes:
The Bank of England left interest rates on hold at their record low of 0.25% amid sluggish pay growth and a squeeze on household spending, while hinting that a rise may come sooner than expected.
The Bank’s monetary policy committee was split, with Michael Saunders and Ian McCafferty calling for an immediate rise to 0.5% to keep rising inflation in check. City economists had expected a vote of 7-2 to hold the rate steady.
Speculation of a November interest rate hike has just pushed sterling up to a new one-year high against the US dollar.
One pound is now worth $1.3337, the highest level since September 2016, having gained more than a cent today.